Research on inequalities

AFD researches the various dimensions of inequality as a concept and the many issues they imply. Our studies focus on such issues as inequalities in income and opportunities, vulnerability, poverty, and social mobility. They shed light on the dynamics of society, the role of public policies, and their interactions with other global challenges such as climate change.

At AFD, research projects seek to improve our understanding of the relationship between income inequality and fiscal policy. Fiscal policies, through their public transfers and spending, are in fact one of the essential tools available to governments for reducing inequalities. One aim of AFD studies is thus to make data available to produce estimates of income inequality before and after taxes. Such data make it possible to analyze the distribution of macro-economic growth and to obtain a more accurate measurement of inequalities and of how they are perceived and redistributed.

AFD’s studies are also based on the premise that inequalities, climate, and sustainability are closely linked. With this in mind, our research focuses on links with concepts such as just transition and energy poverty, with the goal of understanding how reduction of inequalities will help fight climate change.

AFD research also studies the relationship between inequalities and social dynamics. For this purpose, various research projects are carried out to better understand the significance of how inequalities are perceived and to reach a more detailed analysis of the dynamics specific to the middle classes, in terms of cohesion and social mobility.

Read also: Tackling inequality will break the gridlock on what to do about climate change

Our research uses specific tools and methods to better analyze inequalities, allowing us to formulate public policy recommendations and development strategies to deal with them. 

Various tools and methodologies have been developed and/or used in AFD’s research projects, with the goal of strengthening public policy dialog in our partner countries. Some examples:

• Inequalities Diagnostics: a tool developed jointly with the African Centre of Excellence for Inequality Research (ACEIR). This tool aids in reporting on the state of multidimensional inequalities in a country by using available data. It informs policymakers about what priorities to establish to reduce inequalities. 
• Fiscal Incidence Analysis: a tool developed by the Commitment to Equity (CEQ) Institute, to analyze the redistributive impact of budget and fiscal policies. This tool is currently being extended to new countries and updated in countries where it is already used. It identifies the most effective public policies to reduce poverty and inequality, together with partner governments.
• A methodology to assess distributional impact of development cooperation projects on inequality reduction, developed by Mario Negre, Christian Morabito and Miguel Nino-Zarazua.
• The Multidimensional Inequality Framework: a methodology developed by Oxfam to analyze the multidimensional causes and aspects of inequalities according to given contexts. This methodology is based on Amartya Sen’s capabilities approach.

AFD and the European Union have each made reducing inequalities one of their priorities. This shared goal led the two institutions to start working together on reducing inequalities, by establishing the EU-AFD Research Facility on Inequalities in 2017.

During the first phase of this facility (2017-2020), 22 research projects in 32 countries were carried out to better understand socio-economic inequalities and their determinants, effects, and dynamics. The more than 100 papers and policy briefs published not only helped fuel academic discussions, but also initiated exchanges at national level on the theme of inequalities in those countries.

Following the success of this first phase, an extension of the EU-AFD Research Facility on Inequalities was launched in 2021. This new phase focuses on helping to draw up policies to reduce inequalities in four partner countries: South Africa, Colombia, Indonesia, and Mexico.

Over the long term, this program based on research and capacity building will enable partner countries and development operators to grasp a better understanding of the dynamics behind inequalities and then develop public policies to better respond to them.
 

AFD organizes various types of events on the topic of inequalities, with the goal of disseminating our research findings and putting the issue of reducing inequalities at the top of the international agenda:

• International conferences, such as the “Inequalities and Social Cohesion” conference (2018), the “Final Conference” reviewing three years of research of the EU-AFD Research Facility on Inequalities (2021), and the 6th EU-AU Summit’s Side Event on the link between inequalities and climate change (2022). 
• Dedicated workshops: a series of “Research Conversations” webinars on the main themes of AFD’s actions, including on inequalities with the “Inequalities and environmental changes in the Mekong region” (2022). And also webinars co-organized with AFD partners, such as the AFD-Oxfam webinar on the effect of inequalities in international solidarity (2020) and workshops organized by partner research centers.
• A series of webinars dedicated to the projects of the Research Facility on Inequalities: this series of webinars (2020) enabled researchers from partner research centers to present the results of seven research projects carried out under the first phase of the Facility. Each of these webinars sheds light on the multidimensional aspect of inequalities.